Prudent and cost-effective development of all available energy resources provides a foundation for economic growth and helps the world run better. This requires coordinated planning, development, and operation of complex capital-intensive programs and assets across a full range of regulators, resource owners, investors, partners, suppliers, and ultimately energy consumers.
The Oil & Gas industry is rapidly changing and faces the following challenges:
- Increasingly complex assets portfolio and ecosystems to meet raising energy demand
- Need to maximize reserve recovery due to depleting supply sources
- Margins pressures due to volatile commodity prices and rising operation costs
- Increased focus on sustainable operations and risk management
- Emergences of alternate ‘Green’ and energy resources and focus on energy efficiency innovations
- Capital portfolios and projects suffer overruns in budgets and timelines
- Poor operational insight due to lack of transparency, typically multiple data silos exist
- Lack of depth and accuracy into each aspect of the supply chain with disparate data sources
- Weak situational awareness regarding safety and regulations as status quo drives the organization
- Increasing regulations in Finance area (SOX) and Quality & Safety area.
- Increasing need for collaboration and real-time insight
IncQ Consulting with its experienced consultants can help you turn these challenges into opportunities with the help of SAP Software (IS-Oil).
Apply the right solution
- Closed loop management and control of capital and spend to mitigate financial risks and maximize return on all investments
- Convergence of production, maintenance, engineering, and financials at all level of the organization
- Perfect delivery across full hydrocarbon value chain from wells to wheels that maximizes margin and optimizes financial risks
- Simultaneously and proactively manage the risks to people, planet, and plants across the entire enterprise
Drive integrated portfolio planning and project execution, supported by effective supply base
Capital spend is growing and must exceed $19 trillion over next two decades to meet world energy demand. Organizations must focus on enterprise portfolio management, effective project management, and optimization of procurement processes.
As the extent and complexity of capital pro-grams expand, oil and gas companies struggle with the management of their capital portfolios and projects and often suffer overruns in budgets and timelines. Given the size of these investments, such overruns could ultimately have catastrophic consequences on the financial well-being of an organization.
Conversely, improving the management of capital investments and their associated capital and operating spend can lead to a direct and significant increase in return on capital employed, profit, and shareholder value.
Demand for more elaborate methodologies and tools in project and portfolio management, as well as procurement, is increasing. Best-in-class organizations drive integration of project port-folio planning and project execution through commissioning to meet budgets and timelines. This requires collaboration with suppliers.
Closed-loop management and control of capital and spend to mitigate financial risks and maximize return on all investments.
Maximize capital effectiveness, improve supplier networking and collaboration, and speed time to operational readiness for any capital investments.
- Maximized return on capital employed
- Reduced time to operational readiness
- Reduced cost of materials and services
- Streamlined collaboration with suppliers
Manage convergence of production, maintenance, engineering, and financials at all enterprise levels
Success in the upstream oil and gas business depends on well-orchestrated monitoring, surveillance, decision making, and execution. You need to reinforce and close the decision-making loop across all dimensions impacting performance.
Operating effectively means being able to respond confidently to questions by understanding the resources you manage, monitoring their performance, and optimizing their output.
Understanding the interrelationships among the diverse processes at work in upstream oil and gas operations is essential. Only when you know what’s happening and what those events mean can you tune operations to maximize asset utilization and seize market opportunities.
Profitability in upstream gas and oil operations depends on minimizing operating costs, optimizing material resources, and mitigating risk. SAP provides a framework for breaking down data silos and aggregating, analyzing, and executing with production, maintenance, HR, environmental, and financial data to support holistic performance management across all of your upstream assets.
Manage the convergence of production, maintenance, engineering, and financials at all levels of the enterprise.
Increase transparency over all processes and across all functions; close the loop between decision making and execution in the field.
- Increased operational insight
- More accurate production planning
- Better visibility of profitability
- Improved production uptime
- Reliable day-by-day planning
- Reduced time and cost for procurement
Increase visibility into hydrocarbon supply chain and downstream operations
The hydrocarbon supply chain is affected by dynamic variables such as price, demand, and delays. Business success can be achieved only by perfecting management and execution at every stage across the supply chain.
When driving efficiency improvements within the hydrocarbon supply chain, you need to take into account a number of internal and external factors. These factors include logistics, inventory, partners and service providers, and market volatility.
These inputs feed into an integrated business process planning and execution platform, extending across supply, refining, trading, distribution, and retailing operations. In addition, deep integration into financials supports full awareness of commodity risk exposures and enables effective hedging.
Perfect the management and execution of every single step across the end-to-end supply chain.
SAP enables you to manage the entire hydrocarbon supply chain – centrally and seamlessly. By bringing together disparate sources of data in powerful analytics tools and connecting business silos with an integrated solution using common information, you can optimize your business at every stage.
- Reduce commodity risk
- Increase productivity
- Reduce transport and distribution costs
- Maximize on-time, in-full deliveries
- Improve customer satisfaction
- Optimize and accelerate inventory processes
Integrate enterprise operations with standardized EH&S and risk management system
Companies are standardizing operational systems and processes to improve consistency and cut downtime. To reduce complexity, risk, and cost, they want one version of the truth. To achieve this, stakeholders must embrace and drive change.
As the world population increases, so does the demand for energy. Meeting this demand requires continuous improvement of operational processes and assets in order to safely and efficiently maximizes energy production.
Prudent operators make sure that workers have full situational awareness, including all safety and regulatory requirements along with needed work procedures. They must also deal with any changes to these aspects, to go beyond compliance and enable sustainable operations.
The key to maximizing asset utilization is ready access to the processes and procedures used by operations personnel to manage assets. Standard operating and process-safety procedures are used to ensure safe work habits. Maintaining proper training and certification for asset operations contributes to overall safety.
Operational integrity is achieved when systems, work processes, and assets combine to produce maximum yield with minimal downtime.
Improve safety and reduce operating risk.
Drive greater situational awareness, improve process safety, reduce environmental impact, and go beyond compliance in operations.
- Supports safer, more efficient operations
- Reduces risks, incidents, and accidents
- Enables greater operational efficiency
- Improves visibility of operational risks
- Increases enterprise situational awareness